"I believe there is general agreement among the regulators," Reich told reporters before the start of an OTS-sponsored forum on the state of the housing industry.
WASHINGTON (Reuters) - Banking regulators are in general agreement on a proposal to modify mortgages for subprime borrowers, Office of Thrift Supervision Director John Reich said on Monday.
"I believe there is general agreement among the regulators," Reich told reporters before the start of an OTS-sponsored forum on the state of the housing industry.
Reich, who supports a freeze on subprime mortgage interest rates for at least three years, said the length of the freeze and industry concerns about potential lawsuits from undoing loan contracts were among the major discussion points.
Treasury Secretary Henry Paulson, who last week convened a meeting with regulators and industry representatives, is slated to speak at the forum later Monday morning.
!ADVERTISEMENT!Paulson is expected to discuss the proposed framework and efforts that are being made by the government and industry, but Reich said he did not expect the secretary to make any major announcements.
Details over which mortgages would be considered for an automatic interest rate freeze of five to seven years are still under discussion.
The proposal is aimed at helping people with mortgages on owner-occupied homes and not to reward real estate speculators.
Estimates of mortgage resets vary. Federal Reserve officials estimate that 2 million mortgages face resets and as many as 500,000 of these could lose their homes.
(Reporting by John Poirier; Editing by Lisa Von Ahn)
